Credit Card Points App MaxRewards Raises $3 Million Seed Round
With enthusiasm for credit cards that offer points, miles, and cashback continuing to grow, a FinTech app that helps consumers keep track of their earnings is now catching the eyes of investors. Recently, MaxRewards announced that it had raised $3 million. The seed round was co-led by Dundee Venture Capital and Calano Ventures with participation from FinTech Ventures Fund, Service Provider Capital, and Fleetcor president Nick Izquierdo.
This investment comes as the app has been gaining in popularity. According to the company, the number of monthly active users has increased 200% since the beginning of the year, while recurring revenue has increased tenfold during the same period. With the funds, the startup plans to grow its team and expand its product to go beyond credit cards.
Just as the name implies, MaxRewards is an app that helps consumers get the most out of their credit cards and maximize their rewards. Users can link their current credit cards in order for the app to show them what card would be best for purchases at nearby locations. Additionally, premium users can access all of their credit card offers in one place, auto-enroll in quarterly bonus categories, and more.
MaxRewards’ seed round arrives as the credit card rewards industry has seemingly grown more competitive. Since last year, several issuers have rolled out enhanced welcome bonuses and other offers to entice new customers. Meanwhile, the Federal Reserve reports that 95% of all credit card spend is done on cards that earn rewards, highlighting the demand and competition in this space.
Explaining the need for MaxRewards, the company’s CEO Anik Khan said in a statement, “We are in the golden age of rewards. Rewards are a phenomenal mechanism to acquire, engage and retain customers, so it’s no wonder rewards and cash back offers are everywhere. However, for consumers, they are presented with an overwhelming number of programs and offers to manage and utilize.” Khan continued, “We are building a platform that automates maximizing rewards and cash back across all channels and across all mediums to help consumers earn extraordinary benefits from everyday spend.” Elsewhere, Dundee Venture Capital partner Ron Watson said of the startup, “MaxRewards is building the platform that people with multiple credit cards have always wanted. Gone are the days of unwieldy spreadsheets to track and optimize your credit card rewards. MaxRewards does all of that for you now.”
Overall, MaxRewards seems to be onto something as their $3 million seed round shows. However, the app will have some competition as a similar (but not exact) mobile app from the popular travel hacking site The Points Guy is currently in beta. Nevertheless, with expansion goals in mind and newly-earned funds to help fuel their visions, MaxRewards is yet another promising upstart worth watching.